Chat platform Kik’s creator Kik Interactive is launching a new cryptocurrency that sets the stage for a decentralized digital services ecosystem. “Kin” is an ERC20 token on the Ethereum blockchain which will be integrated into Kik as the primary transaction currency.

While the digital future is bright, its control risks being in new corporate hands. That could stifle innovation and choice, Kik founder and CEO Ted Livingston said.

“Kik believes that Kin can bring together a broad group of participants to create an open ecosystem of digital services that prioritizes consumer experience and choice. As a leader in the chat space, we want to bring a fair and sustainable model for digital services to the market and fuel an alternative ecosystem for communications, information, and commerce.”

Ted Livingston

Kik outlined a four-step plan to create a decentralized digital services ecosystem. The first step is to create the Kin cryptocurrency on Ethereum. Used for all ecosystem transactions, Kin, which will be implemented as an ERC20 token, will serve as the basis of interoperability with all other Kin Ecosystem digital services.

Kin will then be integrated into Kik, including serving as the transaction currency within the Kik app, which has millions of monthly users to drive mainstream adoption.

The third step is the creation of Kin Rewards Engine, which will introduce Kin into circulation as a daily reward. An algorithm will coordinate distribution based on each member’s level of contribution to the ecosystem. Eventually this will be implemented as a fully decentralized system running on smart contract technology.

The final stage is the launch of the Kin Foundation, a non-profit governance body for the Kin ecosystem with the mandate of growing an open ecosystem of digital services that offers value to consumers and an open and sustainable platform for developers. The Kin Foundation will over time coordinate the Kin Ecosystem’s transition to a fully decentralized model needing no outside assistance.

The token sale will take place later this summer. For more information and updates on Kin and to download the whitepaper, please go to kin.kik.com.

Free newsletter signup

Never miss another Bankless Times news story as we send you hand-picked articles every morning

We hate spam. Your email address will not be sold or shared with anyone else. You will only receive our daily newsletter. You can unsubscribe at any time.

A two-time LendIt Journalist of the Year nominee, Tony has written more than 2,000 original articles on the blockchain, peer-to-peer lending, crowdfunding and emerging technologies over the past seven years, making him one of the senior writers in the alt-fi sector.

"The evolution of the crowdfunding and peer-to-peer lending scenes is absolutely fascinating to chronicle. It is a joy to be around people with such passion and vision."